Estee Lauder (NYSE: EL) stock price grew more than 2x from around $130 in 2018 end to almost $270 currently, primarily due to favorable changes in its P/S multiple. This does not come as a surprise, as the company has also witnessed a rise in revenue over this period, and revenue per share has risen, helped by a slight decrease in the outstanding share count.
In our interactive dashboard, Why Estee Lauder Stock Moved: EL Stock Has Gained 107% Since 2018, we break down the factors behind this move.
(A) EL’s Total Revenue has grown 30% from $13.7 billion in 2018 to $17.7 billion on an LTM basis
- EL’s total revenue first rose from $13.7 billion in FY ’18 (EL’s fiscal year ends in June) to $14.9 billion in FY ’19, driven by rising demand from the US and emerging markets.
- Revenues then dropped to $14.3 billion in FY ’20 due to the pandemic but have since recovered strongly and currently stand even higher at $17.7 billion on an LTM basis.
- Skin Care sales make up the bulk of EL’s revenues, with $9.48 billion of the company’s sales coming from this segment as of FY ’21, making up almost 60% of total revenue.
- For details about EL revenues and comparison to peers, see Estee Lauder (EL) Revenue Comparison
- Here’s How Estee Lauder Stock Has Managed To Outperform The S&P Since 2018
- Estee Lauder Stock Looks Set To Bounce Back From A 13% Drop Last Month
- Estee Lauder Stock: Up 1.85x Since 2018 Due To Rising Investor Expectations
- Down 4% Last Week, Will The Tides Turn For Estee Lauder Stock Soon?
- Forecast Of The Day: Estee Lauder Skin Care Revenues
- After Strong Post-Earnings Rally, Estee Lauder Stock Looks Poised For Further Gains
(B) Revenue per share (RPS) increased 32% from $37.17 in 2018 to $49.22 currently
- EL revenue rose from $13.7 billion in 2018 to $17.7 billion currently, while the outstanding share count decreased from 368 million in 2018 to 360 million currently.
- Due to this, RPS has risen strongly from $37.17 in FY ’18 to $49.22 currently.
(C) Price-To-Sales (P/S) multiple for EL rose steadily from 3.4x in 2018 to 8.3x in 2021, but stands at 5.5x currently, still more than 1.5x higher than its 2018 level
- Due to EL’s strong performance since 2018-end, its P/S multiple increased from 3.4x in 2018 to over 8x in 2021.
- However, amidst current geopolitical tensions dragging down the broader markets, the P/S multiple has pulled back and currently stands at around 5.5x.
- For additional details about the company’s historical returns and comparison to peers, see Estee Lauder (EL) Stock Return.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
|S&P 500 Return||-2%||-10%||91%|
|Trefis MS Portfolio Return||-3%||-12%||245%|
 Month-to-date and year-to-date as of 3/9/2022
 Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates